Forum: Advice / Cars & Driving

Cars & Driving
Title and Selling a car
By ladybugbop Comments: 89, member since Sun Nov 27, 2011
On Wed Mar 06, 2013 02:11 PM

My Grandmother recently gave me her car since she's retired and no longer wants it. She gave me all the paper work, title ect. When someone is wanting to buy it, what paper work do I need? Do I need the title transferred in my name before I sell it? Or since she signed the back of the title and handed it to me, is that what I give the buyer? And then the buyer t just does what they have to do to get the title transferred in there name?

I've never done this before and I keep trying to call the DMV and am getting no answer!

3 Replies to Title and Selling a car

re: Title and Selling a car
By Chaconnemember has saluted, click to view salute photosPremium member Comments: 6359, member since Thu Jul 12, 2007
On Wed Mar 06, 2013 09:56 AM
Edited by Chaconne (182529) on 2013-03-06 09:59:57 sp
Edited by Chaconne (182529) on 2013-03-06 10:02:28
Edited by Chaconne (182529) on 2013-03-06 10:03:03
This will vary somewhat in every state or province. You can Google your state. I just Googled "Maryland MVA how to register a vehicle." and got all the information I would need.

Here's how it works in my state, and most will be somewhat similar.

Your grandmother signs her title to you. You take that title to your DMV (some states call it the MVA as mine does), give them the signed title and a new title and license plates will be issued in YOUR name.

When YOU wish to sell the car, you sign over YOUR title to the new owner and that person takes it to HIS DMV and repeats the process.

Normally you will have to provide some paperwork to title your grandmother's car to you. In my state you will need:

1. An inspection certificate, which is a safety check by either a state agency or (as done here) a certified mechanic at a private garage or dealer.

2. Proof of insurance. Usually this is a little card with the VIN (Vehicle Identification Number), the name of the company and the name of your agent.

3. Payment of all fees. In my state you have to pay registration tax (same as sales tax) on the book value of the car OR the price as stated on a Bill of Sale. Your Bill of Sale would be a notarized statement from your grandmother that she GAVE you the car. In some states you would still have to pay tax, in my state, a within-family transfer waives this fee.

4. A Bill of Sale stating the price or that it was in intra-family gift.


There may be other requirements depending on the state. While your grandmother's car likely was paid for already, but if there is any liens against the car, that would have to be taken care of. In Maryland, for example, who ever held the loan to finance the car would have to sign off that the loan was paid ON THE TITLE itself. This is usually a rubber stamp done by the bank or other lender.

If you trade in a car to a licensed dealer, they usually take care of the paperwork for you (this is part of the $100 to $200 "Processing fee" they would charge you. A licensed dealer does not have to pay the registration tax, but whoever buys the car will have to do that.

Just remember that you MUST re-title the car in your name, otherwise, legally, it is still your grandmother's car.

Jon
re: Title and Selling a car
By kandykanePremium member Comments: 16415, member since Mon May 01, 2006
On Wed Mar 06, 2013 06:55 PM
In our state, you also have to file a form with the DMV stating that you have sold the car. This is to protect you in the event the new owner delays transferring the title (which many do) and something were to happen such as an accident, a crime or toll fees, etc.

Check your state's DMV website for specifics. All you need to know should be right there.

kk~
re: Title and Selling a car
By mirrimmember has saluted, click to view salute photosPremium member Comments: 753, member since Sat Apr 05, 2008
On Fri Mar 08, 2013 03:36 PM
Yes, transfer it to your name. Are you selling it right away or are you keeping it for a while? It almost sounds like you are planning on selling it right away. Even if this is the case, transfer it to your own name and then transfer it to the seller. I don't think many people in their right minds would buy a car privately from a person who does not even legally OWN the car.

I think in my province, you are supposed to transfer the ownership within 2 weeks of taking possession of the car. We need a safety certificate and an emission test, and a Used Vehicle Information Package which says who the owners have been, if their are any liens on the vehicle, and whether it has ever been "written off" (marked as to be destroyed after an accident or something). You also have to pay the sales tax on either the wholesale price (stated in the UVIP) or the sale price, whichever is higher. I think our tax is only waived in parent to child or spouse to spouse transfers.

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